Air India and aircraft maker Airbus have signed a contract under which Airbus will convert 15 A320neo aircraft from the airline’s existing order book into the advanced A321XLR variant, enhancing the Tata Group-owned carrier’s long-haul narrow-body capabilities.
Under the agreement, 15 aircraft from Air India’s massive Airbus backlog will now be delivered as A321XLRs, the extra-long-range member of the A320 family, reported PTI.
The A321XLR can fly up to 8,700 km, or nearly 11 hours non-stop, allowing airlines to operate so-called “long, thin” routes that were earlier uneconomical for single-aisle jets.
The conversion is expected to help Air India deploy direct services to destinations in Europe and Southeast Asia from Indian metros and secondary cities, routes traditionally served by wide-body aircraft.
The move comes amid rising competition, with rival IndiGo having begun induction of its A321XLR aircraft earlier this month for international routes such as Mumbai–Athens.
The A321XLR decision is part of Air India’s broader fleet modernisation programme. The airline has a total Airbus order book of 350 aircraft, reflecting its ambition to expand on domestic and international routes.
The development comes as India’s civil aviation market is poised for rapid expansion. India’s commercial aircraft fleet of over 100-seat aircraft will nearly triple to about 2,250 over the next decade, up from the current 850, as the country becomes the world’s third-largest aviation market by 2035, a senior Airbus official said on Thursday.
Addressing a news conference on the sidelines of Wings India 2026, Jürgen Westermeier, president and managing director, Airbus India and South Asia, said Indian carriers currently have a combined backlog of around 1,250 Airbus aircraft.
Airbus expects to deliver between 120 and 150 aircraft a year to Indian airlines, or roughly two aircraft every week.
Westermeier said the growth is being driven by a booming domestic market and Indian airlines’ push into international networks. Passenger traffic in India is expected to grow at a compound annual rate of around 8.9 per cent over the next 10 years.
To support this expansion, India is expected to add around 50 new airports to its existing 150, taking the total to about 200 within a decade. The expansion will also have a multiplier effect on the aviation ecosystem.
The maintenance, repair and overhaul (MRO) market is projected to triple from about $3 billion currently to $ 9.5 billion over the next 10 years, covering airframe, engine and component maintenance.
The growing fleet will also boost cargo capacity. Annual freight capacity of Indian carriers is expected to exceed five million tonnes, nearly three times current levels, Westermeier said.
According to Airbus, Indian airlines have placed orders for more than 1,700 aircraft, of which about 72 per cent are Airbus planes.
To keep the expanded fleet operational, India will need around 35,000 pilots by 2035, nearly three times the current strength of 12,000. The technical workforce will also have to grow to about 34,000 from the present 11,000.
Airbus currently sources components worth about $1.5 billion annually from India, more than half of which are complex parts such as aircraft doors. The company is also exploring sourcing of composite raw materials to further deepen its industrial footprint in the country.
